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View AmendmentCurrent Amendment: 36R016.NGS.DOCX to Bill 36
Senators SETZLER, KNOTTS and LEVENTIS propose the following amendment (36R016.NGS):
Amend the bill, as and if amended, page 4, by striking SECTION 3 in its entirety.

Amend the bill further, as and if amended, by striking SECTION 4 in its entirety and inserting:
/ SECTION 4. Article 25, Chapter 36, Title 12 of the 1976 Code is amended by adding:

"Section 12-36-2691. (A) Notwithstanding another provision of this chapter, owning, leasing, or utilizing a distribution facility, including a distribution facility of a third party or an affiliate, within South Carolina is not considered in determining whether the person has a physical presence in South Carolina sufficient to establish nexus with South Carolina for sales and use tax purposes.
(B) For purposes of this section:
(1) 'distribution facility' means an establishment where shipments of tangible personal property are stored and processed for delivery to customers and no retail sales of the property are made. The definition of 'distribution facility' provided in Section 12-6-3360(M)(8) allowing limited retail sales at such a facility specifically do not apply with respect to a 'distribution facility' as defined for purposes of this section;
(2) 'affiliate' means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person;
(3) a person controls another person if that person holds a fifty percent ownership interest in the other person.
(C) This section only applies to either a person who, or a person who has an affiliate who:
(1) places a distribution facility in service after December 31, 2010, and before January 1, 2013;
(2) makes, or causes to be made through a third party, a capital investment of at least one hundred twenty-five million dollars after December 31, 2010, and before December 31, 2013;
(3) creates at least two thousand full-time jobs and with a comprehensive health plan for those employees, after December 31, 2010, and before December 31, 2013. For purposes of this item, 'full-time' and 'new job' have the same meaning as provided in Section 12-6-3360; and
(4) after meeting the requirements of item (3), maintains at least one thousand five hundred full-time jobs and with a comprehensive health plan for those employees until January 1, 2016.
(D) This section no longer applies on the earlier of:
(1) January 1, 2016;
(2) when the person fails to meet the requirements provided in subsection (C) of this section; or
(3) the effective date of a law enacted by the United States Congress that allows a state to require that its sales tax be collected and remitted even if the taxpayer does not have substantial nexus with that state." /

Amend the bill further, as and if amended, page 5, after line 15, by adding appropriately numbered new SECTIONS to read:
/ SECTION ___. Article 25, Chapter 36 of Title 12 of the 1976 Code is amended by adding:

"Section 12-36-2692. (A) Each person to whom Section 12-36-2691 applies shall provide to its customers readily visible notification on invoices or other similar documentation that use tax is imposed on its sales and must be paid by the purchaser, unless otherwise exempt, on the storage, use, or consumption of the tangible personal property in this State.
(B) A person complies with the notice requirement contained in subsection (A) if he provides a prominent linking notice on invoices or other similar documentation that directs its customers to information regarding the customer's use tax payment responsibilities. A linking notice complies with the provisions contained in this subsection if the notice reads as follows: 'See important sales tax information regarding the tax that you may owe directly to your state of residence.'
(C) A person that is required to provide a linking notice pursuant to subsection (B) must also provide this notification on its internet website and catalog."

SECTION ___. The General Assembly finds that the sections presented in this act constitute one subject as required by Article III, Section 17 of the South Carolina Constitution, in particular finding that each change and each topic relates directly to or in conjunction with other sections to the subject of the payment, collection, and administration of the sales and use tax as clearly enumerated in the title.
The General Assembly further finds that a common purpose or relationship exists among the sections, representing a potential plurality but not disunity of topics, notwithstanding that reasonable minds might differ in identifying more than one topic contained in the act.

SECTION ___. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective. /

Amend the bill further, as and if amended, by striking the title and inserting:
/ RELATING TO THE PAYMENT, COLLECTION, AND ADMINISTRATION OF THE SALES AND USE TAX, BY AMENDING ACT 99 OF 2007, RELATING TO THE SALES TAX EXEMPTION FOR DURABLE MEDICAL EQUIPMENT AND SUPPLIES, BY AMENDING SECTION 1B, TO PHASE OUT THE SALES AND USE TAX IMPOSED ON DURABLE MEDICAL EQUIPMENT AND RELATED SUPPLIES; BY AMENDING ACT 99 OF 2007, RELATING TO THE SALES TAX EXEMPTION FOR DURABLE MEDICAL EQUIPMENT AND SUPPLIES TO REPEAL SECTION 1C, RELATING TO FURTHER REDUCTIONS IN THE SALES AND USE TAX ON DURABLE MEDICAL EQUIPMENT AND RELATED SUPPLIES BASED ON GENERAL FUND REVENUE GROWTH; TO AMEND SECTIONS 12-36-90(1)(C)(III), 12-36-90(2)(l), 12-36-910(B)(6), 12-36-910(B)(7), 12-36-1310(B)(6), AND 12-36-2120(69), ALL AS AMENDED, TO PROVIDE FURTHER FOR THOSE INSTANCES WHERE SALES AND USE TAX APPLIES IN CONNECTION WITH WARRANTIES AND SERVICE MAINTENANCE CONTRACTS SOLD IN CONNECTION WITH THE SALE OF TANGIBLE PERSONAL PROPERTY; BY AMENDING ARTICLE 25, CHAPTER 36, TITLE 12, RELATING TO GENERAL PROVISIONS CONCERNING THE PAYMENT, COLLECTION, AND ADMINISTRATION OF THE SALES AND USE TAX, TO PROVIDE THE APPLICABLE REQUIREMENTS AND DURATION FOR WHICH OWNING OR UTILIZING A DISTRIBUTION FACILITY WITHIN SOUTH CAROLINA IS NOT CONSIDERED IN DETERMINING WHETHER THE PERSON HAS A PHYSICAL PRESENCE IN SOUTH CAROLINA SUFFICIENT TO ESTABLISH A NEXUS WITH SOUTH CAROLINA FOR SALES AND USE TAX PURPOSES. /
Renumber sections to conform.
Amend title to conform.